Eduvest - Journal of Universal Studies
Vol. 5 No. 11 (2025): Eduvest - Journal of Universal Studies

Strategy Alternatives to Increase Capacity: Case Study in PT Turmerica, an Herbal Extract Manufacturer

Arif, Haikal Sofyan (Unknown)
Farmaciawaty, Desy Anisya (Unknown)



Article Info

Publish Date
12 Nov 2025

Abstract

The increased global demand of herbal extracts has made PT Turmerica need to re-evaluate its current output capacity. This study aimed to evaluate the most feasible and profitable business solution to solve production capacity gap and meet  the market demand through a combination of technical and financial analyses. Using the TELOS framework and Decision Tree Analysis, three strategic alternatives have been evaluated for consideration: A1 is to invest in a new concentrator machine; A2 is outsourcing; and A3 is extending working hours. From production data from 2023-2025 and expected market growth rates, it can be seen that the current production capacity of 161,915 kg/year is insufficient to meet future demand; the gap to be bridged is estimated as exceeding 17% by 2027. The analysis found that the extractor machine was the main bottleneck in the extraction line, lowering throughput and increasing cleaning and maintenance time. A1 (investment in a new concentrator machine) is the most beneficial alternative, improving capacity by 35.1% as it speeds up extraction concentration, makes extract thickening unnecessary for the extractor, and prevents blockages. In contrast, both A2 (outsourcing) and A3 (additional working hours), have only raised capacity by 8.6% and 24.6% respectively with much higher operational risks and weaker long-term sustainability. Based on TELOS results, A1 offers the most feasible and profitable option based on decision tree analysis which produce higher cash flow.

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Journal Info

Abbrev

edv

Publisher

Subject

Aerospace Engineering Computer Science & IT Health Professions Neuroscience Social Sciences

Description

Eduvest - Journal of Universal Studies is a double blind peer-reviewed academic journal and open access to multidiciplinary fields. The journal is published monthly by Green Publisher Indonesia. Eduvest - Journal of Universal Studies provides a means for sustained discussion of relevant issues that ...